Signs of London market cooling: Nationwide

[LONDON] Nationwide, Britain's third-biggest mortgage lender, has warned that the price of homes in London may start to fall this summer, saying there are signs that the red-hot property market in the capital is cooling.

House prices are soaring in London as the economic recovery, record-low interest rates and government schemes to help home buyers tempt purchasers into one of the world's most expensive property markets.

Bank of England (BOE) governor Mark Carney has warned that a housing bubble poses the biggest risk to the financial stability of Britain's US$2.5 trillion economy. He said the BOE is looking at new measures to control mortgage lending amid a shortage of home-building.